In the News

Price discrimination: BT broadband offers low price deal for families on Universal Credit

Graham Watson

6th May 2021

Low-income customers in receipt of Universal Credit are set to receive a 50% discount on fibre broadband packages.

This is a good applied example of price discrimination with a supplier charging a lower price to those with a reduced ability to pay for what is essentially the same service. However, it will be interesting to see if this is enough to encourage its uptake - much depends as we know on the coefficient of price elasticity of demand! Will loyal customers get good deals too?

Advantages and Disadvantages of Price Discrimination I A Level and IB Economics

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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